Austrian Lenzing 2012 with record fibre sales
Lenzing recorded 2012 a fibre sales volume of 810’000 t, or + 14 %, however the value declined from EUR 1939.5 million to EUR 1896.0 million and Lenzing Group achieved the ever second best result in its history
The group’s consolidated sales decreased slightly by 2.3 % to EUR 2.09 billion (EUR 2.14 billion) , reflecting the fact that more dissolving wood pulp from the Paskov pulp plant was used internally, excluding this effect consolidated sales were steady. EBITDA declined by 25.3 % to EUR 358.7 million (EUR 480.3 million), thus also the margin dropped from 22.4 % to 17.2 %. Decommissioning costs for EPG European Precursor – the joint venture with SGL Carbon and Kelheim Fibres – amounted to EUR 23.5 million and EBITDA after restructuring amounted to EUR 352.4 million and the resulting adjusted EBITDA margin was 16.9 %.
The group’s investments in property, plant, equipment, intangible assets and non controlling interest (CAPEX) rose to a record level of EUR 346.2 million (EUR 196.3 million). It was focused on the completion of the fifth production line at the Indonesian subsidiary PT. South Pacific Viscose (SPV), the debottlenecking programme at the plant in Nanjing (PRC), the capacity expansion drive at the TENCEL® factory in Mobile, Alabama (USA), expansion investments. at Lenzing Austrian site and the start of the construction of the new large scale TENCEL® plant in Lenzing. These investments were complemented by the further remodelling and upgrading of the Paskov plant in the Czech Republic and by acquiring its remaining shares.
As TextileFuture reported before, the 2012 fibre market was earmarked by significant falling selling prices for all fibres. The benchmark for the entire fibre industry, cotton fell more than 40 % below the 2011 level, cotton inventories increased and the global stock-to-use ratio reached a record level of more than 70 %. Spot prices for viscose fibres were down about 15 % in China, the world’s largest fibre market. The average fibre selling price of Lenzing was down 12 % or from EUR 2.22 per kg to EUR 1.96 per kg and it was almost compensated by the rising demand volume. Modal® and TENCEL® achieved price premiums between 40 to 60 % as compared to standard viscose fibres, but in the second half of the year also these prices were affected by price adjustments due to the significant drop in cotton and viscose fibre prices. Specialty fibres accounted for around 35 % of Lenzing’s 2012 fibre sales.
It has to be added that the other Lenzing activities Plastics Products contributed sales of EUR 159.9 million (EUR 172.6 million) with an EBITDA of EUR 15.9 (16.5) million and Engineering EUR 121.8 million (EUR 107.0 ) million with an EBITDA contribution of EUR 10.2 milion (EUR 9.0 milion) The Plastic Products segment with 300 employees is producing plastic niche products such as foils for the construction industry, ribbons for the cable industry, foils and composites for technical applications an packaging as well as high performance Polytetrafluorethylene (PTFE) and the unit will probably be sold because Lenzing AG wants to concentrate itself on the core business. Several bidders have submitted their offers up to March 21, and those are now in a due diligence process.